Lower than anticipated costs of
supplying power to its customers has resulted in a request from Idaho Power
Company to the Idaho Public Utilities Commission to reduce the revenue coming
into its power supply account by about $40.4 million, or an average 4.8 percent
reduction effective June 1.

Every year on June 1, the Power
Cost Adjustment (PCA) results in either a one-year surcharge or credit to
customers depending on the previous year’s power supply costs. Power supply costs
vary each year due to changes in Snake River streamflows, the amount of power
the company has to buy, and the market price for that power. When snowpack and
streamflows are normal or better, as was the case last winter and this spring,
Idaho Power can generate more power from its hydroelectric projects. Hydro
generation is less expensive for the company than generating from thermal sources
or buying power from the regional market, which Idaho Power does during
low-water years. When that happens, customers typically get a one-year increase
or surcharge.

This year, however, the company
proposes a one-year credit that varies according to customer class, ranging
from 7.8 percent for industrial customers to 2.6 percent for small commercial
customers. The largest class, residential customers, would receive about a 3.6
percent decrease, according to the company’s application.

The commission is taking comments on Idaho
Power’s proposal through May 24. Comments are accepted via e-mail by accessing
the commission’s homepage at www.puc.idaho.gov
and clicking on "Comments & Questions About a Case." Fill in the
case number (IPC-E-11-06) and enter your comments. Comments can also be mailed
to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.

Customers should also be aware
that Idaho Power is asking the commission to approve two other rate adjustments,
also effective June 1. These are separate cases and are related to the
company’s annual Fixed Cost Adjustment (a proposed 0.36 percent increase) and
pension expense recovery (a proposed 1.4 percent increase). If all three
proposals are accepted, the net adjustment to customers would be an average 3
percent decrease in overall rates.

Customers can read more about
each of these applications by going to the commission Website. Click on the
electric icon, then on “Open Electric Cases,” and scroll down to Case No.
IPC-E-11-06 for the Power Cost Adjustment, IPC-E-11-03 for the Fixed Cost
Adjustment and IPC-E-11-04 for the pension expense adjustment.